IRCTC — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Kanishk Gupta

My first question would be regarding the resignation Sanjayji made.

Although, there were no reason specified there in the letter that he shared, so can you please tell the reason of his resignation and assure the shareholders and stakeholders that there are no material discrepancies within the company?

Okay, sir.

And my second question would be on Rail Neer.

So I would like to ask that during the channel checks conducted, we have seen meaningful availability of third-party bottle water brands across non-AC train categories and several station kiosks.

So, could you help us understand whether this reflects supply constraints, distribution gaps, or any kind of compliance issues?

And additionally, how should the investors think about the incremental revenue potential if Rail Neer were able to materially improve its share in these channels?

Indian Railway Catering and Tourism Corporation Limited August 13, 2026

Moderator · Conference Operator

Thank you.

We have next question from the line of Kashish Mehta from Dolat Capital.

Please go ahead.

Indian Railway Catering and Tourism Corporation Limited August 13, 2026

Kashish Mehta

Hi, team.

Hi, thank you for taking my question and thank you for the opportunity.

I would like to start, I just read a very interesting article, I think today morning or just yesterday about, Tejas, the advertising rights for Tejas being given to Sprite.

And it is going to be rebranded as Sprite Tejas, which is, quite new because as of yet, a lot of times we see posters or some banners on trains, but, just rebranding the whole train as a certain advertisement.

And, just drawing those advertisement actions back to the, uh, margins which have improved sequentially for, uh, tourism.

So, just wanted to get insights, is there some new leg that the company is now looking into and how, if these actions, propel forward, how is it looking for margins in the tourism sector?

Moderator · Conference Operator

Thank you.

We have next question from the line of Navin from ithoughtPMS.

Please go ahead.

Navin

Yes.

Thank you for taking my question.

Congratulations on a good set of numbers.

Just wanted to understand a couple of things.

So one thing is regarding the non-convenience fee.

It would be great if you could provide the breakup between non-convenience and convenience first, and then also talk about some of the initiatives that are working, that are not working with respect to driving this non-convenience fee revenue.

For example, the RailOne initiative and some of the other cross-sells that we are trying to do, including iPay.

If you could just throw some light on that.

You could answer the question first, and then I will ask my next question.

Moderator · Conference Operator

Thank you.

We have next question from the line of Jinesh Joshi from PL Capital.

Please go ahead.

Jinesh Joshi

Thanks for the opportunity.

Sir, I have a question on our margins in catering division, which were at about 9%.

I think in the opening commentary you mentioned that there were some transit catering projects which led to deterioration in margins.

So if you can clarify a bit on this aspect.

And I think there was another reason that was highlighted, so I missed that.

So also if you can just maybe touch upon that.

And secondly, also from a future perspective given the fact that share of prepaid trains is rising, and if my understanding is correctly we do not get the ITC benefit on the prepaid trains which essentially means that our margins tend to be slightly lower.

So how to think of the steady-state trajectory over here?

Moderator · Conference Operator

Thank you.

We have next question from the line of Balaji Subramaniam from IIFL.

Please go ahead.

Balaji Subramaniam

Thanks for taking my question.

Most of them have been answered.

Just a quick housekeeping question.

Can you just share the number of tickets that were booked on your portal and app in this quarter?

Thanks.

Moderator · Conference Operator

Thank you.

We have next question from the line of Madhuchanda Dey from MC Pro.

Please go ahead.

Thank you.

We have next question from the line of Krunal from PhillipCapital India.

Please go ahead.

Krunal

Hello?

Moderator · Conference Operator

Thank you.

We have next question from the line of Kartik Gada from Multiple Wealth.

Please go ahead.

Kartik Gada

Yes.

Thank you for the opportunity.

So, just back on the convenience of INR113 crores odd.

So, what is the expectation?

What sort of run rate can we expect going ahead, say, in the next couple of years on a quarterly basis for the non-convenience fee part?

It used to be around INR130 crores, INR140-odd crores.

Moderator · Conference Operator

Thank you.

We have next question from the line of Mr. Naveen from ithought PMS.

Please go ahead.

Naveen

Hi, sir.

Thanks a lot, sir.

Moderator · Conference Operator

Hello.

Naveen

For taking my follow-up question.

Am I audible?

Hello.

Moderator · Conference Operator

You are audible.

Naveen

Yes.

Thanks a lot, sir.

Just wanted some commentary on train additions.

Just comment maybe on your visibility for upcoming train additions, especially in more lucrative areas in V catering and the higher convenience fee bracket trains, like the AC trains.

And then how fast we can expect business ramp-up in these trains, any visibility that you would have or expectations that you would have would be great.

Moderator · Conference Operator

Thank you.

We have last question from the line of Rattan Joneja from CoValue.

Please go ahead.

Rattan Joneja

Thank you.

So, I have only one question on internet ticketing.

So, I have been reviewing for the last eight quarters, the revenue has just not grown.

While the number of trains have grown, UPI discounts have grown, passenger growth is there.

In fact, if I book a ticket for four people, because of the PNR, the charges are too low.

The convenience fee for the last seven years has not increased in spite of inflation being there.

So, what are we thinking about this?

How should we think?

Moderator · Conference Operator

Thank you.

That was the last question.

I now hand conference over to IRCTC management for closing comments.

Thank you.

On behalf of Dolat Capital, that concludes this conference.

Thank you for joining us.

You may now disconnect lines.

Thank you.

Questions and answers

“Indian Railway Catering and Tourism Corporation Limited Q1 FY26 Earnings Call” August 13, 2026

and Tourism Corporation Limited · Research Analyst

MR. MANOJ KUMAR SHARMA – DIRECTOR CATERING SERVICES – INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED

Moderator · Conference Operator

MR. RAHUL JAIN – DOLAT CAPITAL MARKETS

PRIVATE LIMITED · Management

Indian Railway Catering and Tourism Corporation Limited August 13, 2026

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to the IRCTC Limited Q1 FY27 earnings call hosted by Dolat Capital.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance duing the conference call, please signal an operator by pressing star then zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Rahul Jain from Dolat Capital.

Thank you, and over to you, Mr. Rahul.

Rahul Jain

Thank you, Nitesh.

Good afternoon, everyone.

On behalf of Dolat Capital, we welcome you all

Rahul Himalian

Namaskar.

Good afternoon, ladies and gentlemen.

I am Rahul Himalian, Director Tourism and Marketing and Chairman and Managing Director looking after.

It is my pleasure to welcome you to IRCTC's earning call for the first quarter of this financial year 2026-2027.

The financial results for the quarter were announced yesterday and have been duly filed with the stock exchanges.

I would like to begin by sharing a brief overview of our performance, following which our Director Finance and CFO, Mr. Rajneesh Narain, will take you through the detailed financial and segment-wise performance.

Quarter 1 of financial year 2026-2027 has been a quarter of resilient performance for IRCTC, reflecting the strength of our diversified business model and the continued momentum across our core business segments During the quarter, profit after tax stood at INR330 crores, supported by healthy performance across our Catering, Tourism, and Internet Ticketing segments.

This performance was further supported by improved operational efficiencies and disciplined cost management.

EBITDA stood at INR386 crores, registering a year-on-year decline of 2.77%.

Despite this moderation, the company continued to maintain a strong operating performance during the quarter.

Our revenue from operations increased to INR1,370 crores from INR1,160 crores in the corresponding quarter of the previous year, representing a robust year-on-year growth of 18.10%.

The growth was primarily driven by strong contributions from the Catering and Tourism segments.

Indian Railway Catering and Tourism Corporation Limited August 13, 2026 Our performance continues to be supported by a strong brand, extensive customer reach, diversified business portfolio, and growing digital capabilities.

We remain focused on enhancing operational efficiency while continuously improving the customer experience.

Looking ahead, we remain committed to strengthening our existing business and developing new age offerings.

We will continue to leverage technology, enhance operational capabilities, and explore emerging opportunities across tourism, hospitality, and value-added services.

We remain confident that our strong financial position, resilient business model, and focus on operational excellence will enable us to sustain our growth momentum and create long-term and enduring value for all our stakeholders.

And before I end, I would like to say that IRCTC is a customer-centric organization for that matter.

For the external customer it stands for I Really Care Towards the Customer, IRCTC, and for the internal customer, our workforce, only when they are highly inspired and motivated.

So for them, IRCTC stands for I Really Care To Contribute.

So with this, the entire circle gets completed, and customer is god for us.

With this brief overview, I would now like to hand over the call to Mr. Rajneesh Narain, Director of Finance & CFO, who will take you through the detailed financial and segmental performance.

Thank you, and I wish all of you a very productive discussion.

Rajneesh Narain Thank you, sir.

Good afternoon, ladies and gentlemen.

On behalf of the management of IRCTC, I extend a warm welcome to all of you to this earnings call to discuss our financial and operational performance for the Q1 2027.

I am pleased to share that the company has delivered increased revenue during the quarter, reflecting our diversified business model and disciplined execution.

Profit after tax stood sustainably at INR330 crores as compared by year-on-year for the mentioned period.

Total revenue for the quarter reached INR1,370 crores, representing an 18.1% increase over the corresponding period last year.

EBITDA stood at INR386 crores with a healthy EBITDA margin of 28.17%, although there is a slight decline in the margins due to changes in revenue mix, particularly higher contribution from catering and implication of additional HR cost of around INR20 crores and increase of direct cost in ticketing segment, our overall profitability remained strong and sustainable.

Let me now briefly highlight the segment-wise performance.

Internet Ticketing revenue stood at INR361 crores, up by about 0.5%, and nearly 89% of the reserved railway tickets in India are now booked through our online platform, underscoring our leadership in digital tech stack.

This segment delivered an impressive EBITDA in excess of 80%, reflecting strong operating leverage and cost efficiency.

Next, Catering recorded revenue of INR732 crores, achieving a robust growth of 33.82% year- on-year.

Margins were impacted due to higher sales in train catering operations and pilot initiatives such as branded catering projects, along with our continued focus on enhancing customer value and passenger satisfaction.

Indian Railway Catering and Tourism Corporation Limited August 13, 2026 Despite this, the segment remains a steady and scalable growth driver, supported by rising passenger volumes and ongoing service improvements.

The related sector, Rail Neer, generated revenue of INR109 crores, registering a 2.83% year-on-year growth with a margin of about 10%.

Tourism delivered positive performance with revenue of INR168 crores, marking an increase in revenue with 13.5% year-on-year.

Despite temporary geopolitical disruptions, EBITDA margins improved to 11.31% from 8.78%, reflecting a better product mix and focused cost realization initiatives.

Our overall first quarter results demonstrate the resilience of our business, disciplined cost management, a strong digital backbone, and unwavering focus on operational excellence.

We remain confident in our growth momentum and are well-positioned to create sustainable long- term value for our stakeholders.

With this, I conclude my remarks.

We will now open the floor for questions.

Thank you.

Moderator · Conference Operator

Thank you very much.

We will now being the question-and-answer session.

The first question is from the line of Kanishk Gupta from SS Family House.

Please go ahead.

Kanishk Gupta

Hello, sir.

A very good afternoon.

and Tourism Corporation Limited · Research Analyst

Yes.

The first one is just a repetition because I am not sure if I heard it correctly.

Your convenience fee for the quarter was INR248 crores and non-convenience fee was INR113 crores.

Is that correct?

And was this lower non-convenience fee also a reason behind the lower margin in this quarter?

Because you explained some IT systems exam etcetera as the reasons.

But was this lower non- convenience fee also one of the factors, and is this likely to continue?

Or you expect this.

Indian Railway Catering and Tourism Corporation Limited August 13, 2026 Because one of the goals of the company had been to increase the non-convenience fee.

If you could shed light on the same.

Okay.

So I can say that it is a combination of investments and some one-off factors in the non- convenience fee side that has led to the lower EBIT margin of around 80%, right?

Right.

So my second question is on the margin in the Rail Neer business.

That has also fallen.

So any particular one-off or what is the reason and what is the sustainable margin in that business?